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- Jun 28, 2004
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AMFA, AFA propose 100% pay cut, transfer of pensions to the PBGC
CHICAGO (AP) -- Two of United Airlines' unions, the Assn of Flight Attendants and the Aircraft Mechanics Fraterna Assn, are proposing a 100% pay cut for its members and transfer of their pensions to the PBGC. The cuts would come if the unions carry out their intention to strike, which would result in the company facing liquidation.
"We don't want to take anymore" said one unnamed mechanic, leaning against his 2002 F350 supercab. "So instead of taking that ten percent cut, I'll show them I really mean business by giving myself a 100% cut!" AFA Members seem to agree. "We just feel that since we didn't take a cut like everyone else for ESOP, now is the time to correct past wrongs and wipe out our entire members' payroll indefinately" said a San Francisco based purser, holding a fake Prada bag from a Beijing layover two months ago. "I guess it would be more rational to keep our jobs and let the PBGC take over pensions, since nearly all of us won't even be close to the PBGC's maximum benefit of over $45,000 per year. But using rational bargaining techniques? Nah, I would rather see our union leadership storm college campuses and cause a scene that will impact bookings."
Company leaders were perplexed. "I've never seen anything like it" said Tom Johnson, a negotiator for United. "Issuing company preferred stock or improving quality of life for out employees are ways we can attempt to soften the blow of this huge decision. But spite? This is the first time I believe a union has used spite as a negotiating technique."
The bankruptcy court begins the 1113© trial on Tuesday, May 10th.
CHICAGO (AP) -- Two of United Airlines' unions, the Assn of Flight Attendants and the Aircraft Mechanics Fraterna Assn, are proposing a 100% pay cut for its members and transfer of their pensions to the PBGC. The cuts would come if the unions carry out their intention to strike, which would result in the company facing liquidation.
"We don't want to take anymore" said one unnamed mechanic, leaning against his 2002 F350 supercab. "So instead of taking that ten percent cut, I'll show them I really mean business by giving myself a 100% cut!" AFA Members seem to agree. "We just feel that since we didn't take a cut like everyone else for ESOP, now is the time to correct past wrongs and wipe out our entire members' payroll indefinately" said a San Francisco based purser, holding a fake Prada bag from a Beijing layover two months ago. "I guess it would be more rational to keep our jobs and let the PBGC take over pensions, since nearly all of us won't even be close to the PBGC's maximum benefit of over $45,000 per year. But using rational bargaining techniques? Nah, I would rather see our union leadership storm college campuses and cause a scene that will impact bookings."
Company leaders were perplexed. "I've never seen anything like it" said Tom Johnson, a negotiator for United. "Issuing company preferred stock or improving quality of life for out employees are ways we can attempt to soften the blow of this huge decision. But spite? This is the first time I believe a union has used spite as a negotiating technique."
The bankruptcy court begins the 1113© trial on Tuesday, May 10th.
